Johnson Controls lifts annual profit forecast on data center demand
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The logo and trading symbol for Johnson Controls International is displayed on a board on the floor of the New York Stock Exchange (NYSE) in New York, U.S., October 16, 2018. REUTERS/Brendan McDermid
July 29 (Reuters) - Industrial supplier Johnson Controls International raised its full-year profit forecast on Wednesday, anticipating sustained demand for data center-related products and services.
U.S.-listed shares of the Cork, Ireland-based company rose 6% premarket.
The company — which provides heating, ventilation and cooling (HVAC) systems, fire systems as well as security and refrigeration equipment to clients across sectors — is poised to benefit from long-term demand trends, as AI data centers, electrification, and smart buildings drive greater need for energy-efficient heating, cooling and building management systems.
• The company expects full-year 2026 profit of $5.05 per share, compared with its earlier forecast of $4.85 per share.
• The Institute for Supply Management's manufacturing PMI stood at 53.3 in June, down from 54 in May but still indicating expansion. A reading above 50 signals growth in the manufacturing sector, which can support spending on industrial facilities and infrastructure and, in turn, bolster demand for companies such as Johnson Controls.
• The company reported adjusted profit of $1.42 per share for the quarter ended June 30, above analysts' average estimate of $1.3 per share, according to LSEG-compiled data.
• Total quarterly revenue rose 11.5% to $6.61 billion from a year earlier.
• Analysts on average were expecting revenue of $6.47 billion in the third quarter.
• Johnson Controls caters to companies in the aerospace manufacturing, healthcare and commercial construction industries.
(Reporting by Megavarshini G. Somasundaram in Bengaluru; Editing by Diti Pujara)
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